Had you previously been reporting Rental Income and Expenses on this property?
If so, you would have set up the property in the Asset section with a 'Cost Basis' (what you originally paid for it plus improvements added before renting) and been getting a depreciation deduction every year on Schedule E.
When you sell it, your Gain or Loss is determined by what you sold it for, less the remaining undepreciated value (Cost Basis), plus sales expenses (Cost of Sale). Any improvements you made to the property while it was a rental would have been added as depreciable rental assets (along with the house). Any improvements you made before it was a rental are added to the Cost Basis when you set it up as a Rental.
For example, you set up a Rental Property in 2015 with a Cost Basis of 100K (you paid 75K for it and added 25K improvements before renting it). You sold it in 2021. Since you've been depreciating it for five years, the Cost Basis of the property is now 80K (TurboTax figures the depreciation out for you).
If you sold if for $1 and had 5K in Sales Expenses, you have a loss of $84,999 ($1 Sale Price, minus 80K Cost Basis, minus 5K Sales Expenses). Sales Expenses for selling your property include sales commissions, advertising, broker and legal fees, and transfer taxes.
If you haven't been reporting Rental Income/Expenses, you could report it as a Sale of a Second Home in TurboTax.
Click this link for more info on How to Report Sale of Rental Property.
Here's more info on Selling Rental Real Estate at a Loss.
@azuniga
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